• India is in the process of opening its civil nuclear power sector to private firms, a major policy shift that ends a six-decade government monopoly. The move, announced by Prime Minister Narendra Modi in this week November 2025, aims to attract private investment and technology to accelerate the expansion of India''s nuclear energy capacity

India’s Current Nuclear Energy Landscape

• India's nuclear program includes both operational and under-construction reactors across various locations, such as the Kudankulam, Rajasthan, and Kakrapar sites. The program primarily utilizes Pressurized Heavy Water Reactors (PHWRs) and Pressurized Water Reactors (PWRs), with additional projects like the Prototype Fast Breeder Reactor (PFBR) in Kalpakkam. Several reactors are in various stages of construction and planned completion.

Nuclear Capacity and Generation

• Current Capacity: India operates 25 nuclear reactors across seven power stations with a combined installed capacity of about 8,880 MW.
• Share: Nuclear power contributed ~3% of India’s total electricity generation in FY 2024-25.
• Future Targets: India aims to reach about 22.5 GW of nuclear capacity by 2031-32 and targets 100 GW by 2047.
• Reactor Types: Most reactors are indigenous Pressurised Heavy Water Reactors (PHWRs), supplemented by a few Light Water Reactors (LWRs) imported from Russia and the United States.

India's Nuclear Reactors

Operational reactors

1. Tarapur: Units 1 and 2 (PHWR), Units 3 and 4 (IPHWR-540)
2. Kudankulam: Units 1 and 2 (VVER V-412 PWR)
3. Rajasthan: Units 2–6 (IPHWR-220), Unit 7 (IPHWR-700)
4. Kalpakkam: Unit 2 (PHWR)
5. Narora: Units 1 and 2 (IPHWR-220)
6. Kakrapar: Units 1 and 2 (IPHWR-220), Units 3 and 4 (IPHWR-700)
7. Kaiga: Units 1–4 (IPHWR-220)

Reactors under construction

1. Gorakhpur: Units 1 and 2 (IPHWR-700)
2. Kudankulam: Units 3, 4, 5, and 6 (VVER V-412 PWR)
3. Rajasthan: Unit 8 (IPHWR-700)
4. Kalpakkam: Prototype Fast Breeder Reactor (PFBR)
5. Kaiga: Units 5 and 6 (IPHWR-700)
6. Chutka: Units 1 and 2 (IPHWR-700)

Planned reactors

1. Mahi Banswara: Units 1–4 (IPHWR-700)
2. Gorakhpur: Units 3 and 4 (IPHWR-700)
3. Kaiga: Units 5 and 6 (IPHWR-700)
4. Chutka: Units 1 and 2 (IPHWR-700)

Uranium Supply 

• Uranium Imports: Imports primarily come from Kazakhstan, which supplies nearly 80%, along with Russia, Uzbekistan, Canada, and Australia.
• Domestic Reserves: India has about 4,25,570 tonnes of natural uranium, mined by Uranium Corporation of India Limited (UCIL) mainly in Jharkhand and Andhra Pradesh.
• Overseas Mining: Stakes in uranium mines are being explored in Namibia, Mongolia, and Kazakhstan.

Legal and Policy Framework

• Legal Framework: The Atomic Energy Act, 1962, restricts nuclear power generation and operation to the central government and its PSUs.
• Liability Law: The Civil Liability for Nuclear Damage Act (CLNDA), 2010, specifies supplier liability provisions following the India-US nuclear agreement.
• Safety Regulator: The Atomic Energy Regulatory Board (AERB) oversees safety, licensing, and regulatory compliance for all nuclear installations in the country.
• Fuel Cycle: India follows a closed fuel-cycle policy, allowing the reprocessing of spent fuel and the scientific management of nuclear waste.

Significance of Private-Sector Participation

• Capital Mobilisation: Corporate entry is expected to help close the USD 26 billion funding gap for the first 11,000 MW expansion phase.
• Project Execution: Engineering firms are likely to adopt a “Fleet Mode” approach to bring gestation periods down from 10-12 years to about 5 years.
• Technology Deployment: Private participation may accelerate the rollout of Small Modular Reactors (SMRs) and move development from site-specific construction to factory-produced units.
• Manufacturing Depth: Large industrial manufacturers can resolve supply-chain constraints and expand domestic forging capacity for Reactor Pressure Vessels (RPV) and Steam Generators.
• Cost Competitiveness: Market competition is projected to move tariffs toward ₹4-5 per unit through higher Plant Load Factors (efficiency) and lower operational overheads.

Structural Barriers for Private-Sector Participation

• Liability Risks: Section 17(b) of the CLNDA imposes unlimited supplier liability, making insurance coverage nearly impossible.
• Financing Costs: Exclusion of nuclear power from India’s Green Taxonomy blocks access to low-cost Green Bonds. The current FDI policy prohibits investment in the nuclear energy sector.
• Revenue Uncertainty: Estimated generation costs of ₹6-8 per unit discourage private operators, as DISCOMs seldom sign Power Purchase Agreements exceeding the ₹4.50 threshold.
• Land Acquisition: Strong local resistance to large nuclear projects (e.g., Jaitapur protests) causes delays and uncertainty that private investors cannot absorb.
• Operational Limits: The Atomic Energy Act confines private firms to “construction-only” roles, denying the Build-Own-Operate model needed to manage operational risks and control the fuel cycle.

Recent Government Initiatives to Support Private-Sector Entry

• Act Amendment: The Atomic Energy Act 1962 is proposed to be amended to allow private companies to ‘Build-Own-Operate’ civilian nuclear power plants.
• Liability Revision: The CLNDA 2010 is proposed for revision to address investor concerns over unlimited supplier liability and align India’s framework with international conventions.
• Mission Launch: The Nuclear Energy Mission for Viksit Bharat (announced in the Budget FY 2025), allocates ₹20,000 crore for R&D in Small Modular Reactors and advanced nuclear technologies
• PPP Models: New PPP models are being developed where private firms provide capital, land, and cooling water while NPCIL retains operational control and plant ownership.